Statute of limitations on medical debts
Medical debts are classified as closed-ended credit contracts with a definite pay off time limit. Unless you have a separate agreement with your provider, medical debts are usually payable at the time services are rendered or, in some cases within 30 days. In every state save Arkansas and Rhode Island, medical debt falls under statute of limitations Written Contract category. In Arkansas however, medical debts statute is 2 years from the date services were provided or from the date of the most recent partial payment for the services, whichever is later. Rhode Island specifically sets 1 year statute on hospital liens. Make sure if a hospital lien includes attending physician services?
Medical debts and bills fall under the Fair Debt Collection Practices Act because medical debt is a debt by definition.
The debt is a consumer’s obligation to pay money arising out of a transaction in which the money, property, insurance, or services are primarily for personal, family, or household purposes, including overdue obligations such as medical bills that were originally payable in full within a certain time period. And paying medical bills is your, the consumer’s obligation, not that of insurance company. You doctor or hospital are not required to bill your insurance company. You are responsible for all your medical debts, and must ensure that your insurance company is billed in a timely manner and correctly. So it is very important to follow up to verify if the medical debt is fully satisfied.